Revenue Trends by the Numbers for MSPs

Recurring revenue growth: More than half of the MSPs surveyed shared that over 50% of their total revenue came from recurring [managed] services, a key marker of MSP maturity. While there will always be some project-based work, the recurring revenue model continues to grow. Twenty-six percent of MSPs reported that over 75% of revenue comes from managed services, and 2% shared that 100% of revenue comes from managed services.

Contract sizes: Those surveyed revealed that 50% of MSP contracts are less than $15K per year. Larger contracts do exist as MSPs go upmarket. If you’re an MSP serving bigger businesses or providing specialized co-managed services, that might significantly increase what you make per contract. In fact, 9% of MSPs reported average annual contracts over $100K.

Regional revenue variations: The revenue [growth] of MSPs does vary by region. In North America, the highest percentage of MSPs (43%) report more than $2.5M in annual revenue. In EMEA, 39% of MSPs saw yearly revenue surpass $2.5M, and in APAC, 26% of MSPs report more than $2.5M in annual revenue.

22% of MSPs said that their total revenue per year grew by up to 5%

24% reported growth of up to 10%

19% of respondents saw growth of up to 20% per year

12% remained the same

42% of respondents experienced medium growth, with revenue increases of 6% to 20% per year, on average

Only 3% of respondents saw a decline in growth by more than 5% annually

Nearly 40% said they expected to reduce their growth projection by between 10% and 20%

23% said they expected to remain on plan or reduce their plan by less than 10%

11% are revising their growth projections upward, expecting revenue to increase during the crisis compared to their original plan